Part 1 Quiz Flashcards
There are valuation scenarios in which it may be permissible for an appraiser’s conclusion to be different given the same property and with the same effective date. Which of the following intended use scenarios
should NOT be expected to have a significant difference in the value conclusion?
A) The first scenario is for a lender located in the subject’s geographic area and the second scenario is for a lender located in another part of the country.
B) The first scenario addresses site contamination in the value conclusion, while the second scenario treats the property as if it is not contaminated using a hypothetical condition.
C) The property inspection is limited to exterior-only in the first scenario and in the second scenario, a complete inspection is performed.
D) The first scenario is for lending purposes, whereas the second scenario is to resolve a property dispute in a courtroom trial.
A) The first scenario is for a lender located in the subject’s geographic area and the second scenario is for a lender located in another part of the country.
The appraiser’s collection of supply and demand data has application to what areas of the data collection process?
A) market area data only
B) comparable property data only
C) both market area data and comparable property data
D) subject property data only
C)
Which of the following would be an appropriate effective date of value for an appraisal assignment of an estate that went into probate 18 months ago?
A) retrospective valuation date
B) current valuation date
C) prospective valuation date
D) contemporaneous valuation date
A) retrospective valuation date
The intended use of an assignment guides an appraiser on the type and extent of research and analyses performed as one aspect of the valuation process. But intended use also guides the appraiser in what other aspect of the valuation process?
A) Intended use guides the report content and level of information provided.
B) Intended use guides the determination of the scope of work.
C) Intended use guides the identification of assignment conditions.
D) Intended use guides the data collection process
A) Intended use guides the report content and level of information provided.
Which of the following best describes a person as an intended user in an appraisal assignment?
A) a person identified by the appraiser as an intended user as a result of the appraiser’s communication with the client prior to accepting the assignment
B) a person that uses the appraisal report to make a decision
C) the person that pays the appraiser
D) the person that is a recipient of the appraisal report
A) a person identified by the appraiser as an intended user as a result of the appraiser’s communication with the client prior to accepting the assignment
When an appraiser identifies the purpose of a real property appraisal, what objective is being sought in the assignment?
A) an opinion of value, as defined by the appraiser, of the real property interest
B) assignment results that maximize the value of the property
C) identifying the purpose of an appraisal is exclusive to consulting assignments in which the client has a specific objective in mind such as a decision to buy,
sell, or lease the property.
D) the intended use of the appraisal because purpose and intended use are interchangeable terms
A) an opinion of value, as defined by the appraiser, of the real property interest
Prior to accepting an assignment, an appraiser is analyzing IRS regulations regarding noncash charitable contributions that will apply to the valuation of a conservation easement. What part of the valuation
process is the appraiser following?
A) Data analysis—highest and best use
B) Identification of the problem—assignment conditions
C) Identification of the problem—identification of intended use
D) Data collection and property description—subject property
B) Identification of the problem—assignment conditions
Physically possible, legally permissible, financially feasible and maximally productive are the four tests related to what type of data analysis?
A) highest and best use
B) market analysis
C) feasibility study
D) econometrics
A) highest and best use
A potential client is on the phone with an appraiser discussing issues about the valuation of a property the client owns. In this initial contact with the client, what step of the valuation process is the appraiser’s focal
point?
A) the valuation process doesn’t start until the appraiser accepts the assignment
B) scope of work
C) data collection and property description
D) identification of the problem
D) identification of the problem
A residential dwelling is situated on a site measuring 150 feet x 200 feet. The zoning of the site has changed from residential to commercial in the last year and the site is large enough to allow a commercial building. Similar residentially zoned sites are selling for $2.00 per square foot. Similar commercially zoned sites are selling for $90,000. What is the indicated value based on the highest and best use of the site as though vacant?
A) $150,000
B) $40,000
C) $60,000
D) $90,000
D) $90,000
In an appraiser’s data collection process for a market value assignment, which of the following is an example of specific data?
A) increasing trend of housing starts
B) area-wide economic indicators
C) subject property description
D) regional demographic data
C) subject property description
Which of the following would be an appropriate effective date of value for an appraisal assignment of an estate that went into probate 18 months ago?
A) prospective valuation date
B) current valuation date
C) retrospective valuation date
D) contemporaneous valuation date
C) retrospective valuation date
While analyzing a property’s value, an appraiser observed that some sites in the immediate area of the subject have unstable soil conditions. The subject site shows no evidence of this issue, but no determination could be made at the present time. When completing the assignment, what assignment condition should the appraiser consider in order to address this issue?
A) jurisdictional exception
B) hypothetical condition
C) extraordinary assumption
D) laws and regulations
C) extraordinary assumption
In which step of the valuation process does an appraiser analyze the ideal improvement for the appraised property?
A) data analysis—highest and best use
B) identification of the problem—identification of relevant characteristics of the subject property
C) data collection and property description—subject property
D) scope of work
A) data analysis—highest and best use
At the start of the valuation process, an appraiser considers and analyzes the various elements in the identification of the problem in order to determine what issue(s) in the scope of work?
A) the type and extent of research and analysis required in the assignment
B) whether the appraiser has the necessary knowledge and experience to perform the assignment competently
C) how much time the assignment will take, and from there, to determine a reasonable delivery date
D) what steps to omit in the valuation process
A) the type and extent of research and analysis required in the assignment
